June 4, 2025
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In the article “‘AI washing’: regulatory and private actions to stop overstating claims” published by Reuters, BLB&G Partner Jonathan Uslaner and Senior Counsel Alec Coquin explore the transformative impact of AI on industries and the resulting surge in investor interest and legal scrutiny of AI-related claims by corporate executives. They highlight the Securities and Exchange Commission’s focus on accurate AI disclosures amid accusations of “AI washing,” where companies overstate their use of AI or the capabilities of AI on their business, emphasizing the materiality of such claims in securities litigation. The authors conclude that as AI continues to expand, investors will increasingly rely on securities laws to address misleading AI-related representations by public companies.
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